True Telecom, a collapsed landline phone company, has been imposed with a fine amounting to £300,000 by the regulator in a “slamming” scandal that involves mis-selling.

The phone company, which fell into administration at the end of last month was said to have “repeatedly broke four separate Ofcom rules.”

Regulator Ofcom discovered that the company engaged in “slamming,” an aggressive form of mis-selling where landline services are transferred without the knowledge of customers.

The regulator also said that True Telecom made “repeated subsequent attempts” to transfer customers who had already cancelled contracts for its services.

The watchdog said that True Telecom, which according to the website of the company, has a five star “excellent service” rating, signed up customers for prohibited 36-month contracts and discovered it in breach of rules that are requiring records of consent to be retained.

The said fine follows a £85,000 penalty that was imposed by the Information Commissioner’s Office in September for nuisance calls.

On top of the fine of Ofcom, the regulator is demanding that True Telecom reimburse those customers that were affected.

True Telecom has been contacted for comment and is yet to send a response regarding the matter.

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